ChinaRock Capital Management has rewarded investors in its five-year-old venture capital fund with 27 times their initial outlays by scoring huge returns from financing start-ups involved in everything from artificial intelligence to ride sharing.
The $37.5 million CRCM Opportunity fund has distributed more than $1 billion since it was set up in 2013, Toby Zhang, a venture capital partner of ChinaRock, said by telephone from San Francisco. An earlier venture capital fund returned more than $300 million.
Years of central bank easing has crimped the volatility that helped drive hedge fund returns and contributed to years of underperformance that prompted many hedge funds to seek alternative strategies. ChinaRock has been ahead of the curve, opening its first venture capital fund in 2005 with investmetns in fledgling companies that scored large returns when they eventually got sold or went public.
“We are looking for opportunities where today in the market it’s very nascent, but in the next three to five years, we think, will drive the next wave of innovations in technology,” Zhang said.
ChinaRock founder Ding Chun, who once managed money for Farallon Capital Management, set up the Genisis Fund in 2005, initially raising $32 million to invest in early-stage Internet and technology companies. ChinaRock now has $158 million in four funds that focus on young tech companies in the U.S. and China, Zhang…